Shares of the Calcutta Stock Exchange (CSE) have rallied significantly in the unlisted market, with prices climbing from around ₹1,500 on June 21 to nearly ₹1,900 by June 30. This surge follows an announcement by West Bengal Finance Minister Swapan Dasgupta on June 22, during the state budget presentation, proposing the revival of the century-old exchange. The book value per share of the CSE is reported to be above ₹3,000, indicating potential for further upside if the revival plans materialize.
The West Bengal government aims to restore Kolkata's status as a financial capital by supporting the CSE's revival. Dasgupta highlighted several benefits, including easier capital access for Eastern India, reduced listing and trading costs, and job creation. The exchange, established in 1923, ceased equity trading in April 2013 after the market regulator SEBI suspended operations due to non-compliance with regulatory requirements. Trading volumes subsequently shifted to the National Stock Exchange (NSE) and BSE, which offered superior technology and liquidity.
Despite the enthusiasm in the unlisted market, substantial challenges remain for a full-scale return to active trading. The modern Indian stock market is dominated by the technologically advanced NSE and BSE. For the CSE to regain relevance, it would require significant investment in technology, robust risk management systems, and crucial regulatory clearances from SEBI. The exchange had applied for a voluntary exit from stock exchange operations in February 2025 following years of disputes with SEBI.
Any revival plan would need to address past compliance failures and establish a secure, updated framework for trading. Officials are exploring whether the CSE can be revived with a different business model, possibly focusing on niche market segments or specialized financial infrastructure, rather than directly competing with the national exchanges. The potential revival could unlock trapped capital for investors holding shares in regional companies listed on the CSE and introduce more competition into the exchange landscape.
